One form of business organization is the limited liability company (LLC). In acc

Question

One form of business organization is the limited liability company (LLC). In accordance with many state statutes, an LLC A. Permits limited liability provided the members do not participate in management. B. Is similar to a partnership because no formalities are needed for its creation. C. May have a tax status similar to that of a partnership. D. Must be for a specified term. One form of business organization is the limited liability company (LLC). In accordance with many state statutes, an LLC A. Permits limited liability provided the members do not participate in management. B. Is similar to a partnership because no formalities are needed for its creation. C. May have a tax status similar to that of a partnership. D. Must be for a specified term.

Explanation / Answer

The correct answer will be option D,I.e, It must be for a specified term. Normally it is for 30 Years and in the absence of a clause in the operating agreement providing for the continuances of the LLC in the death or withdrawal of a person, it ceases to exist upon happening of such event.

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